US plans to abolish SAB 121 and end Operation Choke Point 2.0 to boost crypto business

The US administration announced its intention to repeal SAB 121 guidelines, which previously required banks to hold extra reserves for cryptocurrencies on their balance sheets. Officials state these measures are outdated, hindering up to $50 bln in potential sector investments. In parallel, authorities consider shutting down Operation Choke Point 2.0, a regulation that made collaboration between traditional banks and crypto businesses more difficult.

Over 25 senators, including influential Wyoming Senator Cynthia Lummis, support these reforms. Hundreds of blockchain and crypto startups have expressed readiness to move their registrations to states that adopt new rules sooner. Analysts predict at least a 35% growth in US crypto-related funding by 2025.

However, some critics raise concerns about market manipulation and insufficient oversight. Still, data indicates that in 2024, American providers lost nearly $3.2 bln in revenue due to canceled crypto deals. The upcoming regulatory shifts could reverse this trend by year’s end.